Moreover, Markit manufacturing PMI came in at 55.0 in January, just a hair lower than the expectations of 55.1.

The report noted that the start of 2017 saw a “robust” expansion of output volumes, new orders accelerated to a 28-month high, and January saw the fastest rise in input costs since September 2014.

“The US manufacturing sector has started 2017 with strong momentum. Despite exports being subdued by the strong dollar, order books are growing at the fastest pace for over two years on the back of improved domestic demand,” Chris Williamson, Chief Business Economist at IHS Markit said in the report.

“With optimism about the year ahead at the highest since last March, the outlook has also brightened.”